Top 3 Signs You Should Be On A Tighter Budget

To achieve financial security all you have to do is live within your means. Sounds really simple right? The majority of us know that this is a lot easier said than done. Living within your means is one of the hardest financial woes to tackle, however, it’s absolutely possible. Following a budget is important but even those who follow a budget tend to slide off track. Here are some warning signs that you should be living on a tighter budget:

1) You struggle each and every month to pay rent or mortgage – You simply cannot survive comfortably paying more than 50% of your income towards your rent or mortgage. This is a recipe for disaster as you will have to cut other necessary expenses like insurance and there’s the great risk of losing your home. If you need to move to a more affordable home then move, it’ll pay off better in the long run.
2) You always feel stressed about money – If you’re losing sleep at night or whether you are able to pay day to day expenses without struggle, money issues are extremely stressful. Financial stress is one of the leading causes of stress and can create a very unhealthy you. Creating a tighter budget and sticking to it will ease your mind and allow you to buy what you need when you need it!
3) You’re only able to make the minimum monthly payments on your credit card or you’re using your credit card to pay your other bills – Using your credit to pay off your bills is not paying off your bills, you’re putting them off and creating a bigger debt for yourself. If you can’t pay your bills now, then you won’t be able to pay them later. This stands true for only paying the minimum monthly payment. You’re only paying off the interest and the balance still remains so essentially you’re throwing away money that you don’t even have but could really use. It is recommended you use no more than 30% of your available credit, any more than that can affect your credit score. If you have a high outstanding debt then this is a sign that you need to cut down on spending.

You really don’t want your quality of life to suffer so you can pay your bills on time or are overworked trying to make ends meet so start examining where you’re money is going and try to work on reducing unnecessary spending so you can actually enjoy what you have. For more valuable tips and information, please visit us at www.prudentcreditrepair.ca